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08.24.11

CBO: U.S. Deficit Dips Slightly

Jacquelyn Martin / AP Photo

The United States will continue to run a large deficit over the next 10 years, says the Congressional Budget Office. However, it won't be as high as its previous prediction. The country is expected to rack up a $1.3 trillion deficit this year, the third-largest shortfall in the past 65 years. The annual deficit over the next decade will average 4.3 percent of GDP, and new debt will total around $8.5 trillion over the next 10 years. The CBO also predicted modest economic growth of 3.6 percent over the next three years and unemployment above 8 percent until 2014.